The ifo Business Climate Index fell to 101.0 points in December from 102.0 points in November. Companies were less satisfied with their current business situation. Their business expectations also continued to deteriorate. The German economy faces a lean festive season.

In manufacturing the business climate index fell markedly. This was primarily due to manufacturers’ business expectations, which turned negative for the first time since May 2016. In line with these developments, manufacturers scaled back their production plans. Their assessments of the current business situation also deteriorated slightly, but nevertheless remain at a high level.